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More bad news for Australian economy; Tresurary to re-adjust expectations by 50 BILLION!! only since August!!!
Topic Started: 16 Dec 2013, 06:37 AM (3,933 Views)
Ex BP Golly
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Elastic
16 Dec 2013, 10:00 AM
Well, no surprises there. A responsible government a no excuses government.
For a government that promised to be responsible, I haven't seen them taking responsibility for anything yet. Just blame Labor.
They need to accept that their election policies have contributed to a forecast rise in debt.
Thats awesome!

It wasn't a government that encouraged morons to sink a once in a lifetime, never ending, magic pudding mining boom into their extraordinarily expensive non productive houses.


You bastard Tony Abbott. You did it!

It wuz youze you liberals.
WHAT WOULD EDDIE DO? MAAAATE!
Share a cot with Milton?
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Count du Monet
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Elastic
16 Dec 2013, 10:00 AM
Well, no surprises there. A responsible government a no excuses government.
For a government that promised to be responsible, I haven't seen them taking responsibility for anything yet. Just blame Labor.
They need to accept that their election policies have contributed to a forecast rise in debt.
That's a good point! But maybe the exercise of power was foremost on their minds.
The next trick of our glorious banks will be to charge us a fee for using net bank!!!
You are no longer customer, you are property!!!

Don't be SAUCY with me Bernaisse
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Elastic
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Ex BP Golly
17 Dec 2013, 09:29 AM
Thats awesome!

It wasn't a government that encouraged morons to sink a once in a lifetime, never ending, magic pudding mining boom into their extraordinarily expensive non productive houses.


You bastard Tony Abbott. You did it!

It wuz youze you liberals.
When you are prepared to say anything to become prime minister it is going to bite you on the arse at some point.
Both sides of politics have been responsible for the waste of the mining boom over the past decade.
Where we go from here is anyone's guess but it looks like the Liberals' reputation as credible economic managers is going to head down the drain and unfortunately for them they do not have a great deal of political capital to work with.
I am curious to see how TA handles this but from what I've seen so far he is a populist who is unable to make any difficult decisions.
Only a rat can win a rat race.

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Admin
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Quote:
 
Australia’s broken economic policy toolkit

Robert Gottliebsen

Why has the Australian economy not responded to the unprecedented stimulus it has received? We now know that in the 2013-14 financial year we will see a deficit of around $50 billion. Add to that record-low interest rates, and in almost all post-war years we would see very strong growth, if not a boom, given that level of stimulation.

But it has not happened and the economy remains sluggish. Let me put forward four reasons (there will be many more) – the first three of these reasons show that our country is undergoing fundamental and dramatic change.

Since the war, governments – or, in later years, central bankers – were able to stimulate or hold back the economy by lowering or lifting interest rates. In turn, this would boost or depress the housing industry. We used the housing industry as a virtual economic regulator.

This time around, housing has not responded because although there has been substantial investor buying (including Chinese investment), most of the younger generation has not been able to afford a dwelling. So they are effectively out of the housing market (Low rates have a high price tag for first home buyers, December 10).

Yet the cost of building a basic house has not risen in 20 years, because of remarkable productivity improvements. What has skyrocketed is the cost of land (The price of land is hurting Australia, December 11). The cost of land has been sent through the roof because of zoning, regulation and a complex approvals processes. All of these things have a theoretical value but their combined cost has either priced young people out the market or diverted expenditure away from goods or services to mortgage payments.

When the current younger generation retires, a much larger proportion will not have a dwelling and therefore require much greater help.

Secondly, the mining investment boom drove the dollar to levels that made people working in white-collar areas become nervous that their jobs were not safe from international competition. And that pressure was greatly intensified by global technology.

Thirdly, the industrial relations legislation introduced by the Rudd-Gillard government curbs the hiring of full-time employees by small enterprises – the largest employers.

Fourthly, the mistakes of the Rudd-Gillard government sapped confidence and stopped investment. There are now signs of a pick-up, but it is not uniform around the country

While the dollar has fallen and the government has changed, the other forces are likely to be in place for a long time. Governments will need to think of other ways to stimulate the economy. The best thing they can do is strip Australia of unnecessary regulation and boost small enterprises. That’s what the Coalition plans to do, but it’s a long process, easily derailed and not nearly as effective as the stimulus that went before.

Read more: http://www.businessspectator.com.au/article/2013/12/17/australian-news/australias-broken-economic-policy-toolkit
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Foxy
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Zero is coming...

foxbat101
17 Dec 2013, 04:07 AM
Timo,
You are going to be right.
It's just WHEN????
And a little more abstract HOW.
:pop:
Peter
This is for you Timo,


http://www.youtube.com/watch?v=41Zjh3AirjU


Peter
:tu:
Ex BP Golly
17 Dec 2013, 09:29 AM
Thats awesome!

It wasn't a government that encouraged morons to sink a once in a lifetime, never ending, magic pudding mining boom into their extraordinarily expensive non productive houses.


You bastard Tony Abbott. You did it!

It wuz youze you liberals.
Where else would Joe and Jill average put their money???
Peter
Edited by Foxy, 17 Dec 2013, 12:37 PM.
http://www.afr.com/content/dam/images/g/n/2/1/u/8/image.imgtype.afrArticleInline.620x0.png/1456285515560.png
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MMM
Unregistered

Hello boys and girls and merry Xmas to you all :D

It would appear we have followed the same self destructive path as the US. The article above says how before all we had to do was increase or lower the interest rate to influence the economy but things just don't work that way anymore. The US has had zero interest rates for five years now, but even zero interest rates have had no effect on there economy. Interest rates have NEVER been this low for this long and still this was not enough. They started stimulus and now print or buy 85 BILLION worth of treasury or government bonds as well as mortgage backed securities each month. So interest rates have done nothing and all the stimulus has done is hold the stock market together to avoid total collapse and stop house prices falling further , with no improvement to the economy. Five years on, still zero interest rates, still going further and.further into debt and still this year we see major Us companies moving offshore, see below.

http://www.manufacturingnews.com/news/TAA0731131.html

The only reason we have not suffered the exact repercussions is thanks to the mining boom lead by debt fuelled china and all these ghost cities they had to build.
But with our mindless govt we have just come through a one in one hundred year mining boom owing more than we did before and are now going deeper into debt. Only a government could fuk something up so bad. But now our mining boom has ended and china is getting sick of building cities where people.don't want to be , and borrowing money to fund these money loosing ventures. There euro and US customers are now broke with there economies going backwards with no.end in sight fives years after first getting the wobbles.
Anybody with half a brain knows an.economy simply cannot function on zero interest rates. Its simply a means to get people to.borrow more and go.further into debt, this only takes money away from an already struggling economy. We can see the same results here, major offshorimg of jobs thanks to our high wages, highest in the world that is, companies now moving overseas and some that have thrived here for decades now closing down all together. The fact is our economy, along with the US and euro has Never ever looked so bad, and with NO END in sight whatsoever, that is the reality.
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Perthite
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Quick where is Timmy's drongo peptalk.
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Blondie girl
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Yeah, I got to admit it's been interesting with what's occurring with the IR performance.
It's been a mixed bag of positives & negatives.

One could question "Is Oz living beyond its means?" we've had govts that have undertaken reckless spending ... the fact is in regards to the decline in manufacturing : have we the Oz people contributed to the demise by buying Asian products? There's s much choice for us the consumers.

In some ways, the rose colored glasses have been left on too long.

I've read that real wages may fall with Holden's decline. We really need the high skilled jobs in oil, gas & minerals.
Newjerk? can you try harder than dig up another person's blog. My first promo was with Billabong and my name in English is modified with a T, am Perth born but also lived in Sydney to make my $$
It's Absolutely Fabulous if it includes brilliant locations, & high calibre tenants..what more does one want? Understand the power of the two "P"" or be financially challenged
Even better when there is family who are property mad and one is born in some entitlements.....Understand that beautiful women are the exhibitionists we crave attention, whilst hot blooded men are the voyeurs ... A stunning woman can command and takes pleasure in being noticed. Seems not too many understand what it means to hold and own props and get threatened by those who do.
Banks are considered to be law abiding and & rather boring places yeah not true . A bank balance sheet will show capital is dwarfed by their liabilities this means when a portions of loans is falling its problems for the bank.
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newjez
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Next stage tax rises? If not, where will they cut which will have the least effect?
Whenever you have an argument with someone, there comes a moment where you must ask yourself, whatever your political persuasion, 'am I the Nazi?'
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MMM
Unregistered

Blondie girl
17 Dec 2013, 02:08 PM
Yeah, I got to admit it's been interesting with what's occurring with the IR performance.
It's been a mixed bag of positives & negatives.

One could question "Is Oz living beyond its means?" we've had govts that have undertaken reckless spending ... the fact is in regards to the decline in manufacturing : have we the Oz people contributed to the demise by buying Asian products? There's s much choice for us the consumers.

In some ways, the rose colored glasses have been left on too long.

I've read that real wages may fall with Holden's decline. We really need the high skilled jobs in oil, gas & minerals.
Hello Blondie,

Looks.like your starting to see the bigger picture.

Won't be just Holden, will be Mitsubishi, ford and Toyota too. No more assembly here, all going overseas soon.
And Holden has nothing to do with wages dropping. Wages will be.forced to drop , plain and simple, either drop your wages or perish altogether, that's the choice we now have, no so good eh?

US minimum wage 7.25 an hour, here about 16.75 an hour. If you think they are struggling, how will we go. When our dollar was closer to half there's many years back, the wage gap was not so.different. but when it closer to par it makes a huge difference.
When the collapse in 2008 happened our dollar was around 60 cents to the US dollar, from there it went to over 1.10 and has recently hit 89 cents. Where will it end, its getting hard to say, but even a weaker dollar will not save us now. Some things win some things lose out with a weaker dollar. But the reality is we simply cannot.compete with emerging economies, end of story unfortunately.
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